Nigeria’s real estate sector is facing mounting financial pressure as liquidity challenges continue to threaten the survival and growth of many property companies across the country.
Speaking during a press conference in Lagos to mark the 18th anniversary of GText Holdings, the company’s founder, Stephen Akintayo, revealed that limited cash flow remains one of the biggest hurdles confronting operators in the industry.
According to Akintayo, the nature of real estate investment often locks up funds for extended periods, making it difficult for companies to access liquid cash needed to sustain operations and expansion.
“Real estate is structured in a way where capital is tied down for a long time. If you don’t trade and have other businesses you can take on, you will have liquidity problems,” he said.
Many Real Estate Companies Struggling, Not All Are Fraudulent – Akintayo
The real estate entrepreneur noted that several companies in the sector have battled similar financial difficulties in recent years, stressing that liquidity challenges should not automatically be mistaken for fraudulent activities.
Akintayo disclosed that GText Holdings had also experienced its share of cash flow constraints, adding that many industry players have struggled to unlock funds through different strategies that did not always deliver the expected results.
“Not all real estate companies are trying to play games. Many have liquidity issues and are trying to unlock liquidity in ways that did not work out as planned,” he stated.
GText Expands Into Agriculture, Renewable Energy, AI
In response to the growing challenges in the property market, Akintayo said GText Holdings is aggressively diversifying its business portfolio to create alternative revenue streams and improve financial stability.
The company is expanding into agriculture, renewable energy, security technology, e-commerce and artificial intelligence-powered ventures.
Among the new initiatives are Ginido, a green energy and security solutions business, and GText Farms, which focuses on agricultural land banking and commercial farming.
He also disclosed that the company is restructuring its operations to attract institutional investors as part of its long-term growth strategy.
“We built this company largely without relying on bank loans. Going forward, we are restructuring to begin attracting institutional investors,” Akintayo said.
Plans to Produce CCTV Cameras in Nigeria
Akintayo further announced plans to venture into private security solutions through partnerships with leading CCTV manufacturers in China.
According to him, the company intends to begin local assembly of security cameras before eventually moving into full-scale production in Nigeria.
The move, he said, aligns with efforts to deepen local manufacturing and reduce dependence on imported security technology.
AI Could Eliminate 70% of White-Collar Jobs
On the growing impact of artificial intelligence, Akintayo revealed that more than half of GText Holdings’ workforce operations are already AI-driven.
Describing AI as a necessity rather than an option, he warned that the technology could significantly reshape the global labour market in the coming years.
“For us, AI is not optional. One person can now do the work of 20 people by leveraging AI,” he said.
He added that young Nigerians must focus on practical and entrepreneurial skills to remain competitive.
“I project that about 70 per cent of white-collar jobs will disappear. That is why young people must embrace practical and entrepreneurial skills.”
Experts Warn Against Starting Real Estate Business With Loans
As part of the anniversary celebrations, GText Holdings organised training sessions for realtors focused on digital marketing, land titling, deal-closing strategies and global real estate opportunities.
The event also featured a Developers and Investors Conference and Exhibition designed to expose participants to opportunities in property investment and land banking.
Speaking at the event, entrepreneur and Pamtech Group founder, Ndubisi Chidomere, urged developers to embrace innovation and future-focused approaches to property development.
Meanwhile, industry expert Eizu Uwaoma cautioned aspiring entrepreneurs against relying on loans to launch real estate businesses, warning that high interest rates could undermine sustainability and long-term growth.
He noted, however, that borrowing may become a viable option once a business has achieved stability and profitability.
Source: Leadership Newspaper, as monitored by RealtyBox Media Online.
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